Don’t you wonder if now is the time to start analysing the BetaShares Australian Investment Grade Bond ETF (ASX: CRED) and iShares FTSE China Large-Cap ETF (ASX: IZZ)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – Australia and International shares sectors, respectively.
Is the CRED ETF a good investment? Here’s where you start…
The BetaShares CRED Fund provides investors with exposure to a portfolio a portfolio of investment-grade, fixed-rate Australian corporate bonds.
According to our most recent data, the CRED ETF had $508.19 million of money invested. With CRED’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the Fixed interest – Australia sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.
Get our team’s CRED ETF review, available free when you click this link: access the free investment report.
A quick take of the IZZ ETF
The iShares IZZ ETF provides investors with exposure to the 50 largest and most liquid companies in China which are listed on the Hong Kong Stock Exchange.
With our numbers for July 2021, IZZ’s FUM stood at $121.73 million. Since the IZZ’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the IZZ ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.77% for the IZZ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $15.40.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Did you know: you can get our full ETF review of IZZ by clicking here?
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